Nestlé to pay Starbucks $7.1B to sell its coffee

Nestlé is paying Starbucks $7.15 billion for the right to sell the chain’s coffee beans and drinks in groceries and other outlets around the world, a business that Starbucks says generated annual sales of $2 billion. The Switzerland-based company also will pay royalties on all future sales. Nestlé says the transaction provides the company with a strong platform for continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses. Starbucks CEO Kevin Johnson said the deal will also bring his Seattle-based company’s products “to the homes of millions more around the world through the reach and reputation of Nestlé.” The agreement is subject to customary regulatory approval and is expected to close by the end of 2018, the two companies said in a statement.

This week’s guest on Open Mic is Rod Hebrink, President and CEO of Compeer Financial. The lack of certainty from a new farm bill and weak commodity prices due to lost export markets and robust supplies have left farmers and lenders with a grim outlook for 2019. In this interview, Hebrink discusses the challenge of the unknown and the need for legislators and the White House to take action on farm policy, trade and regulations to help rural America prepare for the year ahead.

The world of agriculture extends beyond what’s growing in your field or living in your barn, and here at Agri-Pulse, we understand that. We make it our duty to inform you of the most up-to-date agricultural and rural policy decisions being made in Washington D.C. and examine how they will affect you – the farmer, the lobbyist, the government employee, the educator, the consultant and the concerned citizen.